BILL ANALYSIS
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THIRD READING
Bill No: SB 1084
Author: Liu (D), et al
Amended: 6/1/10
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE : 6-3,
3/22/10
AYES: Negrete McLeod, Calderon, Correa, Florez, Oropeza,
Yee
NOES: Wyland, Aanestad, Walters
SENATE APPROPRIATIONS COMMITTEE : 7-3, 5/27/10
AYES: Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
NOES: Denham, Walters, Wyland
NO VOTE RECORDED: Cox
SUBJECT : California Economic Security Task Force:
poverty
SOURCE : County Welfare Directors Association of
California
Insight Center for Community Economic
Development
Western Center on Law and Poverty
Womens Foundation of California
DIGEST : This bill creates the California Economic
Security Task Force, subject to a finding by the Department
of Finance that sufficient private donations necessary to
fully cover the Task Force's activities have been deposited
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with the state, that will prepare and submit public reports
on the state's anti-poverty programs that would provide
recommendations to the Governor and Legislature on how to
increase economic security.
ANALYSIS :
Existing law:
1. Establishes the biennial California Economic Strategy
(CES) Panel, chaired by the Labor and Workforce
Development Agency (L&WD Agency) Secretary, to develop
an overall state economic vision and strategy that can
guide public policy, including, examination of the
state's economic regions, industry clusters and
cross-regional economic issues.
2. Requires the CES Panel to prepare a California Economic
Development Strategic Plan (Plan) which includes:
A. A statement of economic goals for the state.
B. Proposals for legislation, regulations and
administrative reforms necessary to improve the
business climate and economy of the state.
C. Evaluation of the effectiveness of the state's
economic development programs.
D. A list of industries in which the state shall
focus its economic development efforts, strategies to
foster job growth and economic development programs
in all state agencies, offices, boards, and
commissions.
3. Establishes various social service programs that provide
cash assistance and other benefits to qualified
low-income families and individuals.
This bill:
1. Establishes the California Economic Security Task Force
(Task Force), subject to a finding by the Department of
Finance that sufficient private donations necessary to
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fully cover the Task Force's activities have been
deposited with the state .
2. Requires the Task Force to consist of the following 13
members or their designees:
A. Two Members from the Senate, with at least one
member from the minority party, appointed by the
President pro Tempore.
B. Two Members from the Assembly, with at least one
member from the minority party, appointed by the
Speaker.
C. An individual from the County Welfare Directors
Association.
D. Four individuals who represent non-government
entities that provide benefits, services, or advocacy
to those living in poverty, appointed by the
Governor.
E. Two individuals who live in poverty with one
representative from a rural area who is appointed by
the Speaker of the Assembly, and one who represents
an urban area who is appointed by the Senate Rules
Committee.
F. Two individuals who have business interests
operating in the state, one representing large
businesses appointed by the Senate Rules Committee
and one representing small businesses appointed by
the Speaker of the Assembly.
3. Requires the Task Force to elect, by majority vote, a
chairperson.
4. Allows the Secretary of the California Health and Human
Services Agency, or a designated representative, to
participate in the Task Force as a nonvoting member.
5. Requires the Task Force to determine and hold public
meetings quarterly, beginning before July 1, 2011.
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6. Requires the Task Force to seek input from outside
groups, organizations, and individuals to consider the
actions and recommendations of other states' poverty
reduction plans, as it deems appropriate.
7. Requires the Task Force to submit public interim reports
on or before July 1, 2012, and a final report on or
before July 1, 2013 to the Governor and Legislature.
8. Requires both reports to:
A. Review in detail current rates of "economic
security" - defined as having the income necessary to
cover basic needs expenses.
(1) These rates will be reviewed using the
California Family Economic Self-Sufficiency
Standard Index and the California Elder Economic
Security Standard Index.
B. Inventory state anti-poverty programs that
increase economic security.
9. Requires the interim report to provide specific
immediate and short-term recommendations regarding the
effectiveness of state programs and services that can be
implemented beginning in 2012.
10.Requires the final report to provide the following:
A. Specific feasible long-term recommendations
regarding the state's efforts to increase economic
security by reducing poverty in the state by 50
percent by 2020.
B. An implementation plan.
C. Estimates of program costs or savings.
D. The number of individuals who would benefit.
E. Specific recommendations on how to create a
self-sustaining entity to lead and coordinate the
state's efforts to reduce poverty in the state by 50
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percent by 2020, considering at least the entity's
structure, necessary funding and statutory changes.
F. Specific information on each states' antipoverty
program.
11.Provides that Task Force members shall serve without
compensation, but shall be reimbursed for Task
Force-related expenses if Task Force funding for this
purpose is sufficient.
12.Requires the Task Force to seek funding and other
resources from philanthropic and private donations, but
resources cannot pose a conflict of interest or be
inconsistent with the Task Force's goals.
13.Specifies that the Task Force is established in the
Executive branch.
14.Sunsets the Task Force on July 1, 2013.
Background
The current federal poverty standard for California is up
to $10,830 for an individual and $22,050 for a family of
four. California's poverty rate has grown to 12.8 percent
in recent years and is at risk of increasing rapidly due to
the current recession. A high number of working families
are particularly impacted; 89 percent of poor families have
at least one household member who is employed. Poverty
significantly impacts the lives of Californians and the
state's economic health by reducing our tax base while
simultaneously increasing demands and thus the costs of
state supported services such as health care, criminal
justice, and social services.
In addition, many of the federal funds available to
Californians to reduce poverty and increase economic
security are not being drawn down fully. As a result, many
Californians at or near the poverty line, are not receiving
benefits for which they are eligible and the state is
foregoing positive economic and multiplier effects because
vital federal funds are left untapped. For instance,
according to a 2009 report by the California Food Policy
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Advocates, California could receive $3.7 billion in
additional federal food stamp benefits each year if every
eligible individual participated in the program. Based on
estimates from the United States Department of Agriculture
and Moody's Economy, for every dollar that California could
draw down in federally funded benefits it could generate an
additional $1.73 to $1.84 for the economy. This is just
one of the many instances in which programs aimed at
reducing poverty face significant challenges in meeting
their policy goals and reaching all eligible individuals
and their families.
CES Panel . The CES Panel was established in statute
October 1993, under the Technology, Trade and Commerce
Agency, and 10 years later, AB 1532 (Nakano), Chapter 627,
Statutes of 2003, moved the CES Panel to the L&WD Agency.
AB 1532 also required the CES Panel to develop a standard
definition of economic development, conduct studies related
to the economic development sections of the State Budget,
and develop a system of accountability in the annual state
budget and legislative process. Ultimately the CES Panel's
purpose is to measure the performance of all state
policies, programs, and tax expenditures intended to
stimulate the economy and bring about economic prosperity
to the state.
Recently in 2009, the CES Panel completed their report "The
California Facts", which provides economic and demographic
snapshots of the state's 58 counties and a comprehensive
statewide snapshot. Under the California Regional
Economies Project, which used the concept of regional
economies and industry clusters previously established by
the CES Panel to provide an updated look at California's
economy, the CES Panel commissioned two reports relevant to
California's economic prosperity: "California's Role in the
Global Economy, and Clean Technology" and the "Green
Economy: Growing Products, Services, Businesses and Jobs
in California's Value Network".
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12
2012-13 Fund
California Economic Costs annually through
July 1, 2013 General/
Security Task Force
Private
SUPPORT : (Verified 5/27/10)
County Welfare Directors Association of California
(co-source)
Insight Center for Community Economic Development
(co-source)
Western Center on Law and Poverty (co-source)
Women's Foundation of California (co-source)
Aging Services of California
American Academy of Pediatrics-California
Asset Building Strategies
Butte County Department of Employment and Social Services
California Alliance for Retired Americans
California Church IMPACT
California Partnership
California Small Business Association
California State Association of Counties
California/Nevada Community Action Partnership
Catholic Charities of California United
Center on Policy Initiatives
Children's Defense Fund
Community Action Partnership of San Luis Obispo County
Community Coalition
Congress of California Seniors
First 5 San Luis Obispo County
Food Bank Coalition of San Luis Obispo County
Fremont Family Resource Center
Grassroots Leadership Network of Marin
Jericho, A Voice For Justice
Jewish Family Service
John Gioia, Chair, Contra Costa County Board of Supervisors
La Hermandad Hank Lacayo Youth and Family Center
Long Beach Community Action Partnership
Lutheran Office of Public Policy-California
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MomsRising.org
National Senior Citizens Law Center
Parent Voices
Riverside County Department of Public Social Services
Sacramento County Board of Supervisors
San Luis Obispo County Department of Social Services
Santa Barbara County Department of Social Services
Santa Barbara Women's Political Committee
Senior Community Centers of San Diego
St. Mary's Center
Stanislaus County Community Services Agency
United Way of California
United Way of the Bay Area
Wider Opportunities for Women
Women at Work
Women's Initiative
ARGUMENTS IN SUPPORT : According to the bill's sponsors
and author, the state dedicates significant resources to
many programs aimed at reducing poverty and increasing
economic security. They note that because these programs
are implemented across many state and county agencies,
coordination is currently very limited. In addition, they
assert that the state does not currently have a
comprehensive inventory of statewide antipoverty programs,
and the Legislature and Administration have no
comprehensive statewide plan for reducing poverty and
increasing economic security. This bill establishes a Task
Force charged with developing a statewide plan for those
purposes.
According to the author's office, the state is not required
to fund the Task Force or its operations, but instead the
bill will be funded and receive other resources by
philanthropic sources and private donations.
JJA:mw 5/28/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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